Piggybacking vs. Bidding: A Quantitative Analysis

Jeff LaPorta: Supervisor of Purchasing, Harford County Public Schools Eric Younkin: The Garland Company Tyler McCall: US Communities Program Manager

Piggybacking Why Do It? Soft Cost Savings But…How Much?

What Do We Need To Know To Calculate Savings? What Are The Steps Involved In A Bid? Who Is Involved In The Process? What Is The Cost For Them To Do This?

Work With The End User For S.O.W. Review Specifications & Finalize Bid Pre-Bid Conference Process Questions From Pre-Bid Bid Opening Analyze Bid Responses Evaluate Bid Tab & Determine Awardee Complete Paperwork; Contract, Board Letter, etc. What Are The Steps Involved In A Bid?

Who Is Involved In The Process? Purchasing Agent Purchasing Assistant Project Manager/End User Legal Office?

What’s Next? How Long Does It Take To Do A Bid? How Long Is Each Person Involved?

ItemActionBuyer Time End User Time Clerical Time Total hours 1 Work w/ end user for scope of work/items needed; Finalize Bid; Send to end user for final review; Post & Complete Bid Folder Hold Pre-Bid Conference Answer questions, respond to inquries; Issue Addendum Bid Opening / Bid Tab Evaluation Complete Paperwork (i.e. contract, correspondence, etc.), Present to Board Total Hours Average Hourly Rate $ $ 47.69$ Total Amount Spent Per Person $ 1, $ $ Total Amount Spent to Complete Bid & Total Amount Saved by Piggybacking $2,242.76

Buyer Salary$76,000 Benefits Cost$12,200 Total Buyer Labor Cost$88,200 Buyer Hourly Rate$42.40 Project Mgr/End User Salary$87,000 Benefits Cost$12,200 Total Project Mgr/End User Labor Cost$99,200 End User Hourly Rate$47.69 Assistant Salary$35,000 Benefits Cost$12,200 Total Assistant Labor Cost$47,200 Assistant Hourly Rate$22.69

Cobb County, GA & The Garland Company, Inc. Benchmarking Cost Savings

The Garland Company U.S. Communities Roofing Products and Services Contract Cobb County, GA is Lead Public Agency for contract

Things to Consider What are specific requirements for certain types of bids? – ITB vs. RFP – Does the Cooperative Contract meet these requirements What does the Cooperative Contract provide to bring value? Are there additional savings for other departments upon contract award?

Cobb County, GA Study Things to considers – Garland’s contract provides design assistance as part of the overall package Typical design fees 7-10% of total project cost – Project/Construction Management throughout the entire process/project Saves facilities staff time during construction process – Life cycle cost studies for various roof systems to quantify final cost – Time Savings for Purchasing and Facilities

Lets Look at the Analysis

Agency Time and Money Savings

Value-Added Services Provided Estimated initial project cost - $275,000 New cost - $242,766 = 11% savings

18 National Cooperative Purchasing Program No cost to use; no commitments or minimum order requirements Operates on the same principles as local and regional cooperatives National structure for public agencies to aggregate collective purchasing power – over 60,000 agencies registered Improves the overall effectiveness of the purchasing processes Nonprofit organization: partnership dedicated to establishing solutions to save time and money Dedicated team of field and administrative professionals to ensure supplier performance and public agency benefit

19 Association of School Business Officials International (ASBO) State Sponsors: Over 90 State Sponsors Nationally Presence and Credibility National Association of Counties (NACo) NIGP: The Institute for Public Procurement National League of Cities (NLC) United States Conference of Mayors (USCM)

20 Advisory Board Auburn University, AL City of Chicago, IL City and County of Denver, CO City of Houston, TX City of Kansas City, MO City of Los Angeles, CA City of San Antonio, TX City of Seattle, WA Cobb County, GA Denver Public Schools, CO Emory University, GA Fairfax County, VA Fresno Unified School District, CA Great Valley School District, PA Harford County Public Schools, MD Hennepin County, MN Los Angeles County, CA Maricopa County, AZ Miami-Dade County, FL Nassau BOCES, NY North Carolina State University, NC Orange County, NY Port of Portland, OR Prince William County Schools, VA Salem-Keizer School District, OR San Diego Unified School District, CA The School District of Collier County, FL Advisory Board Program Purchased Over $146 Million in 2013 Professional Oversight: Advisory Board of well-respected public procurement professionals to ensure responsible and ethical best practices

21 Eligible Agencies Cities Counties Special Districts K-12 (Public or Private) Universities and Colleges (Public or Private) Nonprofit Organizations State Agencies

22 Registration Growth

23 Solicitation Process: Lead Public Agency Model Solicitations are run by a Lead Public Agency (LPA)  The RFP or ITB is issued by the LPA and posted online  National evaluation team - public procurement officials from 3 to 5 public agencies across the country Evaluation is performed and award is made Contracts are held and managed day to day by LPA All RFP/ITB and Contract documents are available on LPA’s are available for questions about solicitation

24 Solutions

25 Supplier Savings Example Each supplier has committed their U.S. Communities price is their best overall government pricing Hertz – discounts from 15-55%, average savings of 20-30% Applied Industrial Technologies – 10-70% discount Ricoh family of copiers – up to 67% discount The Home Depot – up to 3% rebate on annual purchase amounts Independent Stationers – ability to use local office supply dealers and save up to 86% off list pricing

26 Free to U.S. Communities participants Single source login for access to multiple suppliers Immediate visibility into products and pricing Ability to make purchases with p-card or credit card Provides comprehensive reporting Eliminates paper entirely – your green procurement solution

27 How to Participate Complete registration information 3.Can register more than one dept. and buyer 4.Registration enables agency to use program and to be automatically notified of new contracts and solutions Already a customer of a supplier partner? Work directly with your current representative and request “best U.S. Communities member pricing”. Pay exactly as you always have. Never worked with a company? Work with Program Manager to connect with sales representative. Set up an account and pay the company directly.

28 Program Information Register online Authorizing legal statutes Frequently asked questions (FAQ) sheet Documentation: original solicitation and contract References: Advisory Board members, state sponsors Supplier links, product information & contact information Participant login page

Tyler McCall U.S. Communities Cell: Contact Information